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<br />(\~~') <br />. \ ,I I . <br />. -The importance of repayment contracts is made apparent <br />in the letter of April ~2, 1976 from the Regional Director <br />of the Bureau of Reclamation directed to Mr. Don Christensen, <br />Chairman of RLG. That letter says: <br /> <br />Recently, when you and other representatives of your <br />group met with us, Mr. Etchison requested that we <br />advise you as to the nature of the repayment commitment <br />which would be required by the users of water from <br />Narrows Unit. <br /> <br />Under the contemplated contractual arrangement with <br />the United States, water would be delivered to the <br />Lower South Platte Water Conservancy District (Lower <br />South Platte) at the outlet of Narrows Dam and Reservoir, <br />or delivered upstream to the Central Colorado Water <br />Conservancy District (Central) by exchange. The dis- <br />tricts, in turn, would deliver the water to the various <br />ditch companies or districts at their points of di- <br />version through individual subcontract arrangements. <br /> <br />Because of the limited general taxing capability of <br />the districts (1 mill maximum for Lower South Platte, <br />and 2 mill maximum for Central), it will be necessary <br />to look to the subcontracts with the various irrigation <br />entities for assurance of sufficient revenues to enable <br />the districts to meet their payments to the United <br />States. <br /> <br />The term of the subcontracts will be concurrent with <br />each district's repayment contract with the united <br />States. In order to furnish firm and binding repayment <br />assurances, the subcontracts provide that any irri- <br />gation district purchasing water will levy and collect <br />all necessary assessments on its land, a mutual ditch <br />company will levy assessment on its stockholders, <br />individuals and corporations will grant the district <br />the right to levy a tax on such lands in order to <br />collect any unpaid water charges, and municipalities <br />will grant the district the right to levy taxes on <br />property in the municipality to collect any unpaid <br />water charges. With these firm assurances of payment, <br />there should be no need to use the limited general <br />taxing authority of the conservancy districts. <br /> <br />Some additional facts may demonstrate why repayment <br />contracts have not been signed up by irrigators in spite <br />of the fact that the Narrows project would have the benefit <br />of $14.56 per acre foot of subsidy from Pick-Sloan revenues <br />which would be combined with the $14.56 per acre foot charge <br /> <br />-8- <br /> <br />--- <br /> <br />~ <br />